{"id":538465,"date":"2026-06-16T18:43:28","date_gmt":"2026-06-16T18:43:28","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/538465\/"},"modified":"2026-06-16T18:43:28","modified_gmt":"2026-06-16T18:43:28","slug":"annual-increase-in-labour-costs-at-3-2-in-euro-area-euro-indicators","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/538465\/","title":{"rendered":"Annual increase in labour costs at 3.2% in euro area – Euro indicators"},"content":{"rendered":"

In the first quarter of 2026 the hourly labour costs rose by 3.2% in the euro area<\/strong> and by 3.6% in the EU<\/strong>, compared with the same quarter of the previous year. These figures are published by Eurostat, the statistical office of the European Union<\/strong>.<\/p>\n

In the euro area<\/strong>, in the first quarter of 2026 compared with the same quarter of the previous year<\/p>\n

In the EU<\/strong>, in the first quarter of 2026 compared with the same quarter of the previous year<\/p>\n

In the first quarter of 2026 compared with the same quarter of the previous year, hourly labour costs<\/strong> in the euro area<\/strong> rose by 3.3% in the (mainly) non-business economy and by 3.2% in the business economy:<\/p>\n

In the EU<\/strong>, hourly labour costs grew by 3.7% in (mainly) non-business economy and by 3.5% in the business economy:<\/p>\n

In the EU<\/strong>, in the first quarter of 2026 compared with the same quarter of the previous year, the economic activities (NACE Rev. 2 sections) that recorded the highest increases in hourly<\/strong> wage costs<\/strong> were:<\/p>\n

The lowest annual increase was recorded in NACE Rev.\u00a02 section M \u2013 \u2018Professional, scientific and technical activities\u2019 (+1.0%) followed by NACE Rev.\u00a02 sections I \u2013 \u2018Accommodation and food service activities\u2019 (+2.7%) and NACE Rev.\u00a02 section R \u2013 \u2018Arts, entertainment and recreation\u2019 (+2.8%).<\/p>\n

In the EU<\/strong>, in the first quarter of 2026 compared with the same quarter of the previous year, the economic activities (NACE Rev. 2 sections) that recorded the highest increases in the non-wage component<\/strong> were:<\/p>\n

The lowest annual increase was recorded in NACE Rev.\u00a02 section M \u2013 \u2018Professional, scientific and technical activities\u2019 and NACE Rev.\u00a02 section R \u2013 \u2018Arts, entertainment and recreation\u2019 (both +1.6%).<\/p>\n

In the first quarter of 2026 compared with the same quarter of the previous year, the highest increases in hourly wage costs<\/strong> for the whole economy were recorded in Hungary <\/strong>(+16.4%), Bulgaria<\/strong> (+13.2%) and Croatia<\/strong> (+9.2%). The lowest increases were recorded in Malta<\/strong> (+1.3%), France<\/strong> (+1.8%) followed by Denmark<\/strong> and Latvia<\/strong> (+2.5% each).<\/p>\n

Notes for users
\n Revisions and timetable<\/p>\n

The Labour Cost Index data are subject to revision, in particular for the latest quarters, when new source data become available. The original data, before any subsequent revision, are also available here<\/a>.<\/p>\n

Compared with the News Release<\/a> of 19 March 2026, the annual growth rate of the hourly labour costs for the total economy in the fourth quarter of 2025 was revised from 3.3% to 3.4% for the euro area, whereas it remained unchanged for the EU.<\/p>\n

Eurostat releases early estimates for the hourly labour costs of the euro area and of the EU, around 50 days after the reference quarter. Early estimates for the first quarter of 2026 have been released on 21 May 2026 and early estimates for the second quarter of 2026 are scheduled on 19 August 2026.<\/p>\n

Country notes<\/p>\n

At the time of finalizing this publication, data from Belgium were not available for the last three reference quarters (Q3 2025, Q4 2025 and Q1 2026).<\/p>\n

Methods and definitions<\/p>\n

The Labour Cost Index<\/strong> is a short-term indicator showing the development of hourly labour costs incurred by employers, in nominal terms, that is without adjusting for price developments. It is calculated dividing the labour cost in national currency by the number of hours worked. Therefore, the development of variables, labour costs and hours worked, affect the evolution of the index (base year = 2020).<\/p>\n

The quarterly changes in hourly employers\u2019 costs are measured for total labour costs and its main components: wages and salaries; and non-wage costs (labour costs other than wages and salaries). Total labour costs (TOT) cover wage and non-wage costs less subsidies. They do not include vocational training costs or other expenditures such as recruitment costs, spending on working clothes, etc.<\/p>\n

Wage and salary costs<\/strong> (WAG) include direct remuneration, bonuses, and allowances paid by an employer in cash or in kind to an employee in return for work done, payments to employees saving schemes, payments for days not worked and remuneration in kind such as food, drink, fuel, company cars, etc.<\/p>\n

Labour costs other than wages and salaries<\/strong> (OTH – non-wage costs) include the employers\u2019 social contributions plus employment taxes regarded as labour costs less subsidies intended to refund part or the entire employer\u2019s cost of direct remuneration.<\/p>\n

Eurostat publishes Labour Cost Index data for NACE Rev. 2 sections B to S<\/a>. The aggregate is referred to as “Whole economy<\/strong>” for the sake of simplification, although sections<\/a> A: \u2018Agriculture, forestry and fishing\u2019; T: \u2018Activities of households as employers; undifferentiated goods and services producing activities of households for own use\u2019 and U: \u2018Activities of extraterritorial organisations and bodies\u2019 are excluded. Section N: \u2018Administrative and support service activities\u2019 includes the activities of temporary employment agencies.<\/p>\n

Geographical information<\/p>\n

Up to 31 December 2025, the euro area<\/strong> included Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland (EA20)<\/strong>. From 1 January 2026, the euro area<\/strong> also includes Bulgaria (EA21)<\/strong>.<\/p>\n

The aggregate data series commented on in this Euro indicator release refer to the official composition of the euro area in the most recent quarter for which data are available, hence EA21.<\/p>\n

The European Union<\/strong> includes Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden (EU27)<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"In the first quarter of 2026 the hourly labour costs rose by 3.2% in the euro area and…\n","protected":false},"author":2,"featured_media":538466,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[79,179,38333,18,19,17,38334,5723],"class_list":["post-538465","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-ei_lm","tag-eire","tag-ie","tag-ireland","tag-lab","tag-population-and-social-conditions"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116761264743563398","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/538465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=538465"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/538465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/538466"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=538465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=538465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=538465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}